La Rosa reports $8.14M in restricted crypto after $13.5M loss

La Rosa Holdings disclosed $8.14 million of digital assets as restricted on its March 31 balance sheet in a delayed first-quarter 10-Q. The filing followed three reverse stock splits and a reported quarterly net loss of $13.47 million.

The filing shows most tokens were USDC and Frax USD held in a BitGo custodial account. The company did not report token quantities or how much of the balance can be withdrawn. The balance sheet showed $1.74 million in cash, $28.34 million in total liabilities and a $7.5 million stockholders’ deficit. Current liabilities were $12.06 million, and cash used in operations for the quarter was $1.76 million.

Financing agreements in the 10-Q place layers of control over the digital assets. A senior secured convertible note issued Jan. 8 carries $11 million in principal recorded at a $9.9 million purchase price and grants a first-priority security interest over substantially all assets purchased with initial-closing proceeds.

Other assets are subject to a second-priority interest behind a separate February note. The company measured that February note at $14.57 million at quarter-end; the note bears 10% annual interest payable monthly and matures 24 months after issuance.

The filing also records a $5.35 million current liability tied to an investor token right. If exercised, the right would give the investor 50% of tokens bought with note-closing net proceeds and 56.25% of tokens purchased with certain other financing proceeds, with no additional payment required. A March 31 company update had described about $3.9 million of roughly $8.1 million as restricted under that right, but the 10-Q classifies the full $8.14 million balance as restricted because of the broader set of financing controls.

La Rosa reports digital assets at historical cost less impairment and recognizes gains above carrying value only when it sells or otherwise disposes of the assets. By May 31, digital-asset holdings had grown to $10.3 million after the company deployed $6.7 million of initial-closing proceeds and $3.6 million from an equity line. After quarter-end, two Series D closings produced $500,000 and a Series E closing added $250,000 in gross proceeds.

The quarterly loss included a $10.5 million non-cash item related to issuing the secured note. Management warned the company’s working capital, cash and operating cash flow would be insufficient to meet projected operating expenses for at least 12 months from the financial-statement date and noted substantial doubt about the company’s ability to continue as a going concern. La Rosa also submitted a Nasdaq compliance plan after reporting negative $1.85 million in stockholders’ equity at Dec. 31. The filing retroactively adjusted share and per-share figures for an April 1-for-10 reverse split, following earlier splits in July 2025 and January 2026.

The 10-Q did not disclose token counts, the allocation of holdings by funding source, whether the token right has been exercised, any delivery history or whether any collateral has been released. Because liens and token rights can attach to the same assets, the filing does not specify how much of the reported digital-asset balance is freely usable for operations or available to unsecured creditors.